Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-06-24
CARRIERS BY WATER AND BY RAIL

Ana 10 San Diego
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CARRIERS BY WATER AND BY RAIL.
River and lake boatmen recently held a
Convention at Cincinnati to promote their
Interests as against railroads In plain
English, their purpose was to secure a
strict enforcement of the letter of the
fourth section of the interstate commerce
law.
And why? To benefit the people? To
conserve the interests of the consumers +?
by no means; but TO give monopoly of
the carriage of goods to water routes, ard
naturally, as result, to visit upon the
consumer greater cost for his supplies.
Now the carrier by water has a free way.
He can, therefore, transport cheaper than
the carrier by rail, whose fixed expenses
remain the same, whether he secures bust
ness or not, while the water carrier, if idle,
loses no more than is involved in the idle
ness of his capital.
Not long ago we were told that if goods
could be carried more cheaply by water
than by rail, and still yield profit to the
water carrier, such freights belonged
naturally to the water route. That is to
say, the land carrier should not be per
mitted to carry at as low rate even if it
involved loss or no profit upon the partic-
uiar freights taken. But it was replied
that this should be so, in order to prevent
railroads from making up for the low
competitive rates by raising local or non
competitive rates accordingly. But this
argument leaves out of sight wholly the
TACT that the local or non-competitive rate
is the real basis for Just and reasonable
charge-.or the real value of the service
rendered, the cost with the profit added
Now, road with its operating expenses
fixed, does not add greatly to them by
taking through or competitive freights
That is to say, a road answering to the
demands of local paying traffic can better
afford to carry along with it the through
traffic at a much lower rate than not to
take 1t at all, and thus abandon it to the
competitor by water. Certainly it never
has been, and never can be, shown that
the consumer would be benefited by such
policy of abandonment.
Let the case be supposed of railroad
which has no other business than that
known as through traffic, the tariff for
which is established by the competition
sF'th the business of carrier by water,
whose liked expenses are not wholly de-
termined, or are not largely material,
and who can therefore carry at an exceed
Ingly low rate, and still leave margin Of
profit. How long, does any one suppose
such rail line could support itself? But
II, having good local business, it can
take through traffic and add what it gets
thereirom to the aggregate Of its earnings
without proportionately increasing its Oh
Grating expenses, why should it not be per-
mitted to do so, and wherein is the CON
sumner or the patrons of the road at inter-
mediate or local points injured? Is it not
clear that they are rather benefited by the
augmented income Of the road and
therefore, its increased capacity? What
then becomes of the so-called natural right
OF the water carrier to freights that move
at the minimum charse?
he trufh ic tha tb,.,-l
low rate does not increase the CHARGE 70
the intermediate consumer. II is upon the
false premise that it does, that all the err
roneous reasoning upon this subject has
proceeded. The one good effect of the
interstate commerce law thus far has been
to make this truth clear to the people.
For it is not to be denied that great num-
berS have honestly entertained belief in
the false syllogism that if a carrier can
transport goods a long distance between
competitive points at very low rate, he
ear therefore transport like goods shorter
distance over the same route between in
termediate and non-competitive points for
the same or less rate This further truth
the brief operation Of the law has made
clear TO the public, that the worst thing
that can happen to shippers between nom
competitive points, and to consumers,
sssuld be the elimination from the bust
ness of one carrier, of the right to take
through freights at low rates, and the giving
OF such freights to another carrier ex-
ciusiyely, and thereby reducing the capac-
siy 10 serve the local points.